Air France-KLM returns to profit

PARIS 
Air France-KLM returned to profit in its latest fiscal year as the rebounding global economy lifted traffic and helped offset a euro1 billion rise in its fuel costs, the airline said Thursday.

Europe's largest airline by passengers says in a statement it made a euro613 million ($872 million) net profit for the 12 months ending March 31, in contrast to the euro1.6 billion net loss a year earlier when the global economic crisis hammered freight and passenger traffic.

Air France-KLM warned that "uncertainties" including the long term impact of Japan's earthquake, crises in the Middle East and Africa and elevated fuel prices could weigh on its performance this year. The airline forecast an operating profit higher than the euro122 million it made last year.

Air France-KLM had warned in February that it would miss a targeted improvement in its operating profit due to security issues in North Africa as well as weaker-than-expected revenue in the fourth quarter driven by overcapacity by rivals.

The airline's fourth quarter earnings were hurt by the Japan earthquake as well as the unrest in the Middle East and Africa. Passenger operations lost euro367 million in the quarter, the airline said, while its freight business lost euro9 million.

In March a French judge filed preliminary manslaughter charges against Air France and jet manufacturer Airbus in connection with the June, 2009 crash of Air France Flight 447 from Rio de Janeiro to Paris. The accident killed 228 people and was the worst in Air France's history. Last month investigators found the jet's wreckage on the Atlantic floor nearly 4,000 meters down and successfully brought up the jet's flight data recorders, which investigators are now examining in a bid to finally discover what caused the accident.